Carnarvon Petroleum has provided an update on the Phoenix South resource estimates following further technical work on the Phoenix South-2 well results (CVN 20% interest).
Hydrocarbons were discovered in the Caley Member in the Phoenix South-2 well (refer CVN ASX announcement on 19 December 2016). Further technical work has determined that due to the pressures encountered, and the nature of the gas observed, the resource estimates in the Phoenix South Caley have been increased from pre-drill estimates. The gross mean estimate is currently 489 bscf recoverable gas and 57 million barrels of associated condensate (being 143 million barrels of oil equivalent ('boe'), gross, Pmean) in a conventional anticline trapping structure.
Certain data from the Phoenix South-2 well suggests there could be a stratigraphic component to the Caley structure which could materially increase the resource size presented in this report. Further details on this are outlined in the Technical Appendix to this announcement, with further drilling required to properly determine whether this case exists.
In addition to the discovery in the Caley, a gross 25 metre oil sand was encountered within the Hove Shale in the Phoenix South-2 well. Resource estimates for this discovery are still under review.
Carnarvonís Managing Director and CEO, Adrian Cook said:'Our strategy to test a number of prospects in our Phoenix project has produced the very real possibility of us having over one trillion cubic feet of gas and over 100 million barrels of oil and condensate within an area capable of being aggregated into a central development, only 150 kms offshore from important gas infrastructure near Port Hedland.
The potential size of the Phoenix South Caley resource adds to the excitement of the recent Roc Caley discovery and its historic well test. Incorporating the large Dorado Caley prospect, that is expected to be targeted later this year, and this significant outcome is looking very possible.
There is a great deal of work still to be undertaken, but our progress and success to date clearly makes this one of the most exciting projects in the Australian oil and gas sector at the current time.'